Based on the home's sale price, the term of the loan, buyer's down payment percentage, and the loan's interest rate, this calculator can help estimate what you'll need to pay out monthly for your new home. This calculator factors in PMI (Private Mortgage Insurance) for loans with less than a 20% down payment, as well as town property taxes and its effect on the total monthly mortgage payment.
When considering to purchase a home the first step is to connect with a lender, someone that comes recommended, someone that understands various products and is not steering you in a direction that you are not familiar with or feel comfortable with. If you’re a first time home buyer there are several loan options available.
The USDA Rural Development has 2 loan products that are based on income, rural property, the county and are No Money Down products.
The Direct is geared to lower income individuals and or families. The loan is directly through Rural Development and does not include a lender. With the exclusion of the lender your closing costs are less due to the lending fees are reduced and eliminated.
The Guaranteed is lender based due to increase income that doesn’t qualify you for the direct. This is also is a No Money Down program.
FHA, Federal Housing Administration offers loans with 3.5% down. If you have served your country there is the DVA, Department of Veterans Affairs which is a Zero down program for Veterans.
Conventional loans have various products depending on down payment. Be careful when approached by a lender to do creative financing. If you need to be creative to get in to a home then maybe it’s not the time for you to be purchasing.
In order to determine the amount of home you can afford a lender will use your debt-to-income ratio to determine the percentage of your pre-tax income you spend on debt. Your debt ratio will include: monthly housing costs, car payments, credit cards, student loans, and any other installment debt. Remember if you take on more debt before buying a home it will have an impact on the amount of the loan that the lender will finance.